Chintai, a company that uses blockchain technology to help modernize the capital markets, has announced that it has raised $7.5 million in the seed round from investors that include Block. One, Cryptology Asset Group and others.
The company is based in Singapore and it has said that it would be looking to utilize these funds to tokenize traditional financial assets and push them to its blockchain network and ensure that these tokenized assets would be compliant as well.
“Asset tokenization is an important trend that brings efficiency, liquidity, and fractional ownership to markets of all types,” said Kevin Rose, Senior Vice President at Block. one. “We’re excited to work with Chintai toward our shared vision of a blockchain-enabled digital asset revolution built on regulated financial services.”
Chintai says that its product suite can be used by big and small companies to move to distributed ledger technology as this is likely to disrupt the financial system in the long run. Those companies that would like to onboard their assets to DLT can make use of the Chintai platform to achieve their goals.
“It’s well known that distributed ledger technology (DLT) is going to dramatically disrupt the financial system. Established financial institutions want to future-proof their competitive advantage, while smaller firms see the technology as a way to access innovative new business lines and increase their margins. Our comprehensive platform makes it easy for anyone to embrace compliant DLT for their specific needs,”
The platform uses the EOSIO open-source protocol of Block. One and the platform helps to provide compliance-enabled technology for its clients for issuance, secondary trading, automated market-making, and other services. The platform is expected to launch its beta in July 2021 and the company is looking to secure the Recognized Market Operator (RMO) and Capital Markets Services (CMS) licenses from the Monetary Authority of Singapore (MAS). Regulatory oversight is likely to be a key aspect for startups working in the crypto space henceforth, as investors and major companies look for some control and oversight with the partners that they deal with.
But with regulations in various jurisdictions still in a state of flux as far as crypto industry is concerned, it is indeed advantageous for companies to partner with regulated entities when they are looking to enter into the blockchain space.